Style Gardens Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 03876990 (England and Wales)

STYLE GARDENS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G.N. Pugh

I.M. Pugh

REGISTERED OFFICE:

Port Road

Wenvoe

Cardiff

CF5 6AD

REGISTERED NUMBER:

03876990 (England and Wales)

FIXED ASSETS

Tangible assets

4

658,700

635,435

CURRENT ASSETS

Stocks

5

265,982

163,067

Debtors

6

34,088

31,236

Cash at bank and in hand

574,944

701,716

875,014

896,019

CREDITORS

Amounts falling due within one year

7

601,865

610,347

NET CURRENT ASSETS

273,149

285,672

TOTAL ASSETS LESS CURRENT LIABILITIES

931,849

921,107

CREDITORS

Amounts falling due after more than one year

8

(150,371

)

(203,284

)

PROVISIONS FOR LIABILITIES

11

(93,195

)

(79,340

)

ACCRUALS AND DEFERRED INCOME

(9,629

)

(11,628

)

NET ASSETS

678,654

626,855

CAPITAL AND RESERVES

Called up share capital

12

110,040

110,040

Non-distributable revaluation

reserve

78,530

131,278

Retained earnings

490,084

385,537

SHAREHOLDERS' FUNDS

678,654

626,855

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 July 2023 and were signed on its behalf by:

G.N. Pugh - Director

1.	STATUTORY INFORMATION

Style Gardens Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support.

At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Valuation of land and buildings - As described in note 7 to the financial statements, land and buildings are stated at fair value based on the valuation performed by the directors.

Useful economic lives of tangible assets - The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimate based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes for the carrying amount of the tangible fixed assets and accounting policies in note 2 for the useful economic lives of each class of asset.

Turnover

The policies adopted for the recognition of turnover are as follows:

Sale of goods:

Turnover represents the value of goods sold excluding value added tax and is recognised in the financial statements when cash has been received or is receivable.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates value added tax and other sales taxes.

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- The company has transferred the significant risks and rewards of owner to the buyer;

- The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Concession and Rental income

Turnover is recognised in the period which it relates over the term of the lease agreement. Income is recognised within other operating income.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Over term of lease

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets are held at cost or valuation.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stocks are stated at the lower of cost and estimated selling price costs to complete and sell. Costs price is calculated by reference to retail prices less known mark-ups. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and interest is charged to the Profit and Loss Account on a straight line basis.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliable estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments".

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, loans to related companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 58 (2022 - 42 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 February 2022

1,293,757

208,893

340,443

41,158

1,884,251

Additions

88,836

-

39,277

-

128,113

At 31 January 2023

1,382,593

208,893

379,720

41,158

2,012,364

DEPRECIATION

At 1 February 2022

931,304

170,695

125,980

20,837

1,248,816

Charge for year

60,663

9,558

27,966

6,661

104,848

At 31 January 2023

991,967

180,253

153,946

27,498

1,353,664

NET BOOK VALUE

At 31 January 2023

390,626

28,640

225,774

13,660

658,700

At 31 January 2022

362,453

38,198

214,463

20,321

635,435

Cost or valuation at 31 January 2023 is represented by:

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Valuation in 2003

574,120

-

-

-

574,120

Cost

808,473

208,893

379,720

41,158

1,438,244

1,382,593

208,893

379,720

41,158

2,012,364

The value of the properties have been included at its open market value.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST OR VALUATION

At 1 February 2022

15,500

60,426

75,926

Transfer to ownership

-

(60,426

)

(60,426

)

At 31 January 2023

15,500

-

15,500

DEPRECIATION

At 1 February 2022

2,066

36,501

38,567

Charge for year

3,359

-

3,359

Transfer to ownership

-

(36,501

)

(36,501

)

At 31 January 2023

5,425

-

5,425

NET BOOK VALUE

At 31 January 2023

10,075

-

10,075

At 31 January 2022

13,434

23,925

37,359

5.

STOCKS

2023

2022

£

£

Stock of goods for resale

265,982

163,067

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

2,179

21,135

Other debtors

31,909

10,101

34,088

31,236

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

54,688

55,798

Hire purchase contracts (see note 9)

3,100

14,053

Trade creditors

200,253

200,697

Taxation and social security

123,851

110,998

Other creditors

219,973

228,801

601,865

610,347

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

143,137

192,950

Hire purchase contracts (see note 9)

7,234

10,334

150,371

203,284

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2023

2022

£

£

Net obligations repayable:

Within one year

3,100

14,053

Between one and five years

7,234

10,334

10,334

24,387

Non-cancellable

operating leases

2023

2022

£

£

Within one year

140,000

72,000

Between one and five years

700,000

216,000

In more than five years

6,160,000

-

7,000,000

288,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

197,825

248,748

The Natwest bank holds a first legal charge over the leasehold premises at Port Road in Wenvoe, the main operating premises of the company. The bank also holds a fixed and floating charge over all of the assets of the company. The bank holds a personal guarantee of £50,000 each, from all of the Directors, charges on their life cover policies, and a collateral guarantee from S. Pugh & Son (Garden Centre) Limited and in addition to security on the assets of S Pugh & Son (Garden Centre) Limited.

Hire purchase liabilities are secured against the tangible fixed assets to which they relate.

11.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

93,195

79,340

Deferred

tax

£

Balance at 1 February 2022

79,340

Accelerated capital allowances

15,335

Charges on revaluation

(1,480

)

Balance at 31 January 2023

93,195

The deferred tax account consists of the tax effect of timing differences in respect of;

2023

2022

£

£

Accelerated capital allowances

67,018

51,684

Revaluation of investment properties

26,177

27,656

93,195

79,340

As at 31 January 2023 there was a deferred tax creditor of £93,195, which is referred to in note 14 to the financial statements.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

302,610

Ordinary A

10p

30,261

30,261

302,610

Ordinary B

10p

30,261

30,261

275,100

Ordinary C

10p

27,510

27,510

55,020

Ordinary D

10p

5,502

5,502

55,020

Ordinary E

10p

5,502

5,502

36,680

Ordinary F

10p

3,668

3,668

36,680

Ordinary G

10p

3,668

3,668

36,680

Ordinary H

10p

3,668

3,668

110,040

110,040

13.	RELATED PARTY DISCLOSURES

During the year, Style Gardens Limited made management fees and purchases of £302,406 (2022 - £145,857) from S Pugh & Son (Garden Centre) Limited. The company also made sales of £21,546 (2022 - NIL) in respect of shared marketing and consultancy fees. All these transactions were carried out on an arms length basis.

Included in creditors, amounts falling due within one year is £183,000 (2022 - £218,958) due to S Pugh & Son (Garden Centre) Limited. In addition S. Pugh & Son (Garden Centre) Limited provides a guarantee in respect of the lease entered into by Style Gardens Limited.

All amounts due from the company are interest free and considered repayable on demand.

S Pugh & Son (Garden Centre) Limited is a company under common control and common Directors.

During the year the company was provided with construction services to the value of £52,156 (2022 - £59,609) by Pughs Construction Limited. As at the 31 January 2023 an amount of £30,661 (2022 - NIL) was owed to Pughs Construction Limited and was included with creditors, amounts falling due within one year.

Pughs Constructions Limited is a company under common control and common Directors.